Think you know what freelancing is? You might be surprised. Contrary to popular belief, freelancing is not simply working for oneself. It’s a type of work that can be done by anyone who has a skill they can offer others in exchange for money. Freelancing offers the flexibility and freedom to work from home, on your schedule, and with no boss looking over your shoulder. But it also comes with its own set of challenges- from finding clients to managing your time wisely. As a freelancer, you want to make sure that you are doing everything possible to set yourself up for success. Unfortunately, many freelancers make common mistakes that can hurt their business. As a freelancer, it’s important to be aware of the most common mistakes that can easily be avoided. By being mindful of these blunders, you’ll be able to streamline your workflow and maintain a high level of professionalism. In this blog, we’ll outline some of the most common mistakes made by freelancers and provide tips for avoiding them. Stay productive and avoid costly errors by reading on!
1. Not Charging Enough
One of the most common mistakes freelancers make is not charging enough for their services. This can lead to working long hours for little pay, which can be discouraging. Make sure to charge what you’re worth and don’t be afraid to negotiate. Are you charging enough for your services? This is a question that all freelancers and business professionals should ask themselves from time to time. Freelancers are often afraid to charge what they’re worth. They think that if they charge too much, they’ll lose clients. However, if you charge too little, you’re not going to be able to make a living. Charging too little can be detrimental to your business while charging too much can send potential customers fleeing. So, what’s the right price point? And how do you determine it? We will discuss this in my upcoming blogs. This can be a result of inexperience or simply not knowing what the going rate is for similar services. However, there are a few consequences to undercharging your services. First, it can devalue your work in the eyes of potential clients. If you are not confident in your pricing, they may feel that you are not confident in your abilities. Second, it can lead to financial difficulties down the road. If you do not charge enough to cover your costs, you will eventually find yourself in a position where you cannot afford to continue working as a freelancer. Finally, undercharging can create an unhealthy dynamic with clients. If you are constantly putting financial pressure on yourself to meet their needs, they may begin to take advantage of you. Here are a few tips for charging what you’re worth:
1. Know your worth – Do some research and find out what other freelancers in your field are charging. This will give you a good starting point.
2. Don’t be afraid to negotiate – If a client asks you to lower your price, be prepared to negotiate. It’s okay to start high and come down if necessary.
3. Don’t undervalue your services – Remember that you are providing a valuable service and you deserve to be paid accordingly. A good way to determine is to look for salary calculators on LinkedIn or Glassdoor and see how much the going rate for a full-time expert in that role is in the client’s country and then determine how much of that effort level are you putting into it and then keeping in mind that you need to showcase the benefit of your services over hiring a full-time employee even economically, calculate your per hour charges and charge them accordingly.
4. Don’t be afraid to walk away – If a client is not willing to pay what you’re worth, it’s okay to walk away from the deal.
5. Be prepared to explain your price – If a client questions your price, be prepared to explain why you’re worth it.
2. Not Having a Contract
Another mistake freelancers make is not having a contract with their clients. Let’s discuss why you need a contract and what should be in it. So, if you’re thinking about starting to freelance or you’ve been freelancing for a while but haven’t used contracts, keep reading!
A contract can help protect you and help ensure that both parties are clear on what is expected. There are a lot of freelancers who do not use contracts when working with clients. There are a lot of reasons for this, but the main one is that they don’t know how to create a contract or what should be in it. This can lead to problems down the road if there are disagreements about the scope of work or payment. Without a contract, there is no legal protection so there’s always the risk that your client will take advantage of you by withholding payment, changing the scope of the project, or otherwise breaching the agreement, which can lead to you doing more work than you agreed to.
A contract is a legally binding agreement between two or more parties to protect both the freelancer and the client by spelling out the expectations, scope of work, and compensation for the project. Without a contract, there is no legal recourse if the client doesn’t pay or if the freelancer doesn’t deliver on their promises. Additionally, a contract gives both parties a clear understanding of what is expected, which can help to avoid misunderstandings and disagreements down the road. If you’re working as a freelancer, always make sure that you have a signed contract in place before starting any work. It’s the best way to protect yourself and your business. The contract should spell out the terms of the agreement, including the scope of work, deadlines, payment terms, and other important details. If a freelancer does not have a contract in place, they are at risk of being taken advantage of by their client. In some instances, the client may even refuse to pay for work that has already been completed. To avoid this situation, it is always best to have a contract in place before beginning work on a project.
A simple search on Google can give you loads of freelancer contract samples, download the one that suits you best and alter the text according to your requirements. But make sure to read through the contract before sending it to your client as poorly worded or wrong contractual elements can make your clients lose confidence in you.
3. Not Promoting Your Business
If you’re a freelancer, you know the importance of promoting your business. Many freelancers make the mistake of not promoting themselves or their work, which can lead to fewer clients and opportunities. While it may seem like a time-consuming and expensive endeavor, promotion is essential for attracting new clients and keeping your business afloat. Several low-cost promotional strategies can be used to reach your target market, including social media marketing, blogging, and guest posting on other websites. By taking the time to promote your business, you can attract new clients and keep your freelance business thriving. It’s important to let people know what you do and how you can help them, what services you offer and how they can reach you. As a freelancer, it’s important to remember that you are your own business or in short “you are the brand”. This means that you need to promote yourself and your work just as much as any other company would. There are many ways to promote yourself as a freelancer, and it’s important to tailor your approach to fit your unique strengths. By promoting yourself effectively, you can build a strong client base and grow your business. By not promoting yourself, you’re missing out on potential business opportunities. So, how can you go about promoting yourself as a freelancer? Here are a few tips:
1. Start by creating a strong online presence. Make sure your website is professional-looking and up-to-date, and ensure that your social media profiles are also polished.
2. Start networking with other professionals in your field. Attend local events and meetups, or join online communities where you can share your work and get feedback from others.
3. Give presentations or workshops.
4. Display your work in public places.
5. Get involved with trade associations or business entities and also participate in fairs, festivals, and other events.
4. Not Keeping Track of Expenses
As a freelancer, it’s important to keep track of your expenses. This includes things like office supplies, travel expenses, and marketing costs. Freelancers are not used to dealing with the financial side of their business, and they don’t realize the importance of tracking their expenses. However, not keeping track of your expenses can lead to some problems, such as overspending on unnecessary items or not being able to claim tax deductions for business-related expenses. Furthermore, not tracking your expenses can also make it difficult to create an accurate budget. Therefore, all freelancers must make a point of tracking their expenses regularly. As a freelancer, one of the most important things you can do to improve your productivity is to keep track of your expenses. By keeping track of your expenses, you’ll be able to see where your money is going and identify any areas where you may be spending too much. This will help you make necessary adjustments to your budget and ensure that you’re using your resources wisely. Additionally, tracking your expenses will help you monitor your progress over time and identify any patterns that may be affecting your productivity. This may seem like a tedious task, but it’s essential for keeping your finances in order. Here are some tips to trace your expenses:
1. Set an effective budget for all your income and expenses of your business. Keep a regular update on the budget changes so that you are aware all the time about your finances.
2. Try to make use of accounting software to manage your finances. Use software and tools for income and expense tracking, banking and credit card integration, invoicing, and tax calculation to keep a track of your money, ensure your accounts are up to date, for making billing easier, to make paying tax easier respectively.
3. As a freelancer you pay taxes differently than a salaried person so keeping check of proper tax filing and keeping aside finances for tax payment becomes essential. As a freelancer you have to keep in check all the information regarding your tax payment amount when to pay, how much percentage, what are the laws, etc. as your employer no longer will handle your tax payment for you like in a 9 to 5 job. Always keep in mind to avoid a late payment fine. If you are not able to it is always advisable to hire an accountant or take help of service providers like ClearTax etc. to handle your tax payment.
4. Try keeping your business and personal finances separate by making two separate bank accounts for your personal and business finances so that you refrain from making the mistake of paying personal costs with business funds and thus will be able to handle all tax matters properly.
5. Plan ahead for irregularity in pay or unexpected situations as freelancing work doesn’t always provide steady income flow, i.e., some months you will have abundant clients and some months almost negligible clients. So, it’s advisable to always keep some emergency financial reserve for covering your costs when funds are scarce. Keep building your reserves by stashing some funds away each month.
5. Not Staying Organized
Staying organized is key for any business, but it’s especially important for freelancers. If you’re not organized, it will be difficult to keep track of your projects, deadlines, and clients. If you’re a freelancer, then you know that staying organized is key to success. Unfortunately, many freelancers make common mistakes that can cost them time and money. Being a freelancer comes with a lot of perks. You can make your hours, work from anywhere, and be your own boss. However, there is one downside to this type of work: it can be easy to become disorganized and lose track of deadlines. This can quickly lead to missed opportunities and lost clients. This is often since you are used to working on your own and don’t have someone else to keep track of your work. However, freelancers can stay organized and boost their productivity if they keep a detailed schedule of all their upcoming deadlines and appointments. There are many ways to stay organized, including using a task manager or project management software or software like Asana. This will help them to plan their time more efficiently and avoid forgetting about important tasks. Additionally, freelancers should create a system for tracking their progress on projects. This could involve maintaining a daily to-do list or setting up folders for each client. By taking the time to stay organized, freelancers can ensure that they are always on top of their work and meeting deadlines. Also, use a planner or online calendar to keep track of tasks and appointments. And most importantly, don’t be afraid to ask for help when you need it. There are plenty of resources available to help you stay on track. As a freelancer, one of the most important things you can do is stay organized. This may seem like a daunting task, but it’s essential for keeping your business running smoothly. There are many different ways to stay organized, but one of the easiest is to create a system that works for you. Here are some tips for you:
1. Stay organized with a calendar.
2. Keep your desk clean and free of clutter.
3. Use folders to organize paperwork.
4. Create a separate email account for official incoming messages, so you can stay on top of things that matter and need any action from your end.
5. Create a folder system for all your documents, including receipts, contracts, and invoices.
6. Don’t forget to take breaks, get up and move around every few hours.
7. Make sure to eat healthy meals and snacks and drink plenty of water throughout.
6. Not setting clear boundaries with the client
Another mistake freelancers make is not setting clear boundaries. When you’re working from home, it can be easy to let work take over your life. You need to be clear with your clients about when you’re available and when you’re not. Let them know if there are certain times of day or week that you’re not available and stick to those boundaries. As a freelancer, it’s important to set clear boundaries with clients – both in terms of communication and project expectations. If you make the mistake of not setting boundaries, it can lead to frustration and resentment on both sides. By establishing clear boundaries at the beginning of a project, you can avoid these problems and ensure a smooth working relationship with your client. Here are some tips on how to set boundaries with your clients:
1. Establish what you are and aren’t willing to do. Before agreeing to any project, be sure to establish what you are and aren’t comfortable doing. This can include anything from working overtime hours to completing certain tasks.
2. Communicate openly with your client. If something comes up during the project that you’re not comfortable with, be sure to communicate this with your client immediately. This way, they can aware of any potential issues and make changes accordingly.
3. Set clear expectations from the start. When starting a new project, be sure to set clear expectations with your client. This can include things like deadlines, communication frequency, and payment terms.
4. Don’t be afraid to say no. If you’re feeling overwhelmed or like you can’t handle a certain project, don’t be afraid to say no. It’s better to turn down a project than to deliver subpar work.
7. Not Taking Time Off
Just because you’re a freelancer doesn’t mean you have to work all the time. It’s important to take some time off now and then to recharge your batteries. This can help you avoid burnout and maintain a healthy work-life balance. It’s no secret that freelancing can be a very rewarding career choice. You have the freedom to work from home, set your own hours, and choose the projects you want to take on. However, one mistake many freelancers make is not taking enough time off. Taking time for yourself is essential to maintaining your productivity and overall well-being. A recent study found that nearly 60% of freelancers don’t take any vacation days at all! This can not only lead to burnout but decreased productivity and worse work/life balance. So, if you’re a freelancer, be sure to make time for rest! You’ll be glad you did. Let’s discuss some of the best ways to take a break as a freelancer:
1. Schedule some time off in advance – If you know you want to take a vacation or have some time off, schedule it in advance. This way, you can make sure you have the time available and that your clients are aware of your plans.
2. Take advantage of slow periods – If you have a slow period at work, use that time to take a break. This can be a great opportunity to catch up on some relaxation.
3. Use your vacation days wisely– If you have vacation days available, use them! This is a great opportunity to take some time off and explore new places. Don’t work during your time off. When you’re on vacation, make sure you’re taking some time for yourself. This means disconnecting from work and not checking your email or taking phone calls.
4. Plan a staycation – If you can’t afford to take a trip, plan a staycation instead. This can be a great way to relax and unwind without having to travel far from home.
The takeaway here is that if you’re a freelancer, you need to be aware of the common mistakes that you might make. Avoiding these mistakes can help you save time and money and can help you grow your business. Freelancers are often their own worst enemies. As a result, they can’t grow their business and make more money. It’s not always easy to figure out what you’re doing wrong or why your freelance business isn’t growing as quickly as you want. Sometimes this can lead you to also make some other mistakes such as being too focused on the short-term, not having a niche, not keeping up with industry trends, relying on a single income stream, and not networking. By avoiding these mistakes, you’ll be well on your way to growing your freelance business. Do you have any other tips for avoiding common mistakes? Share them in the comments below!